Act against property developers who mislead buyers, authorities told

The National House Buyers Association (HBA) said while plans to hold developers responsible for their promises to consumers are commendable, they must be backed by action.

HBA honorary secretary-general Datuk Chang Kim Loong said developers were required to submit their brochures to the National Housing Department for approval before they were circulated in the market.

The Housing Development (Control and Licensing) Regulations 1989, he said, outlined the dos and don'ts that developers must follow when drafting their advertisements.

These include promoting free legal fees, projected monetary returns or rental income, claims of panoramic views, estimated travelling time from the residence to popular destinations, and any particulars that developers cannot substantiate.

Failure to comply can lead to developers being fined up to RM50,000, a jail term of up to five years, or both.

Checks by reporter found that many agents are promoting unrealistic travelling times from their units to key destinations, exaggerating free legal fees and inflating rental returns for buyers.

Some even promise ready tenants to entice buyers.

Chang said there had been few reports about developers being prosecuted, despite numerous such cases being reported.

"I have no issue with giving more power to the tribunal, but my problem is that the law already governs misrepresentation, yet there is a lack of enforcement.

"How many errant developers have been prosecuted?

"Now it seems like they are pushing the responsibility to housebuyers.

"(It's as if they are saying), "If you (housebuyers) are not happy, take it to the tribunal.

"That shouldn't be the case. The National Housing Department is the licensing body that issues licences and sales advertisement permits, so they need to take responsibility (to ensure there is no misrepresentation in developers' advertisements)."

He said some developers or their agents often misled buyers through electronic media, digital visual images and other alternative advertising.

"Some developers give unrealistically short travel times to important places without mentioning the mode of transport.

"For example, proximity to upmarket areas such as Mont Kiara, even if the property is closer to Segambut, or claiming that the Petronas Twin Towers are within sight of the property.

"Some even guarantee returns on investment if purchasers spend more money on furniture and fittings."

Chang said housebuyers might also file a civil suit against developers should they feel misled by the advertisements.

On a separate matter, Chang called on the Housing and Local Government Ministry to ensure developers provide housebuyers with a full set of approved documents, such as layout and building plans.

The requirement, which is also mandated under the Housing Development (Control and Licensing) Regulations, is important to protect buyers from developers who might make unauthorised alterations in terms of measurements or using substandard building materials.

These plans, he added, would also help homeowners adjust wiring, plugs and plumbing

"The ministry has, since 2015, agreed with the HBA that the detailed dimensions of the property and its facilities must be provided to buyers at the outset as part of the building plan attached to the Sales and Purchase Agreement (SPA).

"These may be provided as copies of the approved plan on paper, regardless of the thickness of the SPA, or in an electronic format, such as a disc readable on a computer."